Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Heineken sales lower than expected after Vietnam lockdown

Published 27/10/2021, 07:47
Updated 27/10/2021, 11:30
© Reuters. Cans of Heineken non-alcoholic beer are seen on display at a sampling event at Pier 17 in New York City's Seaport District, New York, U.S., July 15, 2021. REUTERS/Joyce Philippe

© Reuters. Cans of Heineken non-alcoholic beer are seen on display at a sampling event at Pier 17 in New York City's Seaport District, New York, U.S., July 15, 2021. REUTERS/Joyce Philippe

BRUSSELS (Reuters) - Dutch brewing giant Heineken reported a steeper than expected decline in third-quarter beer sales on Wednesday after COVID-19 restrictions cut volumes in Vietnam, one of its top three markets, by more than half.

The world's second-largest brewer said it sold 5.1% less beer on a like-for-like basis than a year earlier, with Asia-Pacific sales down 37.4% as COVID-19 restrictions hit Cambodia, Indonesia, Malaysia and Vietnam.

The average estimate in a company-compiled poll of analysts was for a 2.3% overall decline, with the Asia-Pacific region down 25.6% and modest growth in Africa, the Middle East and Europe.

The maker of Europe's top-selling beer, Heineken, and Tiger and Sol lagers retained its forecast of full-year results finishing below those of pre-pandemic 2019.

Vietnam, consistently one of Asia's fastest-growing economies, suffered a record contraction in the third quarter as an outbreak of the Delta variant of the coronavirus led to a strict lockdown in the commercial hub of Ho Chi Minh City.

The city's lockdown started to ease this month, and though bars remain closed, Heineken Chief Executive Dolf van den Brink said there are signs of recovery in the Asia-Pacific region

© Reuters. Cans of Heineken non-alcoholic beer are seen on display at a sampling event at Pier 17 in New York City's Seaport District, New York, U.S., July 15, 2021. REUTERS/Joyce Philippe

European sales also disappointed, failing to deliver an expected uplift. Heineken said the weakness partly reflected poor summer weather in northern Europe, though it also faced logistics diruptions in Britain.

Rivals Anheuser-Busch InBev and Carlsberg (CSE:CARLa) provide updates on the third quarter on Thursday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.